Corporate Update - September, 2018
October 1, 2018
Canada Rare Earth – In the Business of Rare Earths
September 2018 Corporate Update
Vancouver, British Columbia: Canada Rare Earth Corp. (“Canada Rare Earth” or the “Company”) (TSX.V: LL) is developing an international rare earth business based on our commodity-trading platform and our unique connections to existing, developing and planned rare earth processing facilities.
Important achievements during September 2018 include:
Strategic Relationship with Talaxis Limited
Our strategic and financing relationship with Talaxis Limited (“Talaxis”), a wholly owned subsidiary of the large Asian-based commodity trading company, Noble Group, continues to gain momentum on a number of fronts including:
- Establishment and growth of sources and supply chains in Asia, Southeast Asia, North and South America, and Africa; and
- Collaboration with Talaxis to enhance processing capability and throughput by providing additional equipment and support to independent suppliers leading to increasing volumes and enhanced relationships with the suppliers.
Rare Earth Supply Chain
Our customer base has confirmed the desire to purchase 1,000 metric tons of rare earth concentrate from Canada Rare earth on a monthly basis.
We completed an initial delivery of rare earths material from Talaxis to verify the process and logistics for the supply chain and closed on the simultaneous hedged sale to a major customer. The second batch of material from Talaxis has been purchased to fill a pre-arranged and hedged sale of the same product to a major client. The product is to be transported to the customer in mid-October and the sale completed later in the month.
Simultaneously we purchased another larger batch of rare earth material from a different supplier to augment supplies for our customer. The product is in transit to a customer and the hedged sale should complete within October. Additionally, we have over 175 metric tons of inventories being prepared for shipment and subsequent sale.
We continue to evaluate several green field rare earth properties for near and mid-term production.
Rare Earth Production – Enhancement and Separation
We have two key initiatives underway for establishing proprietary enhancement and separation facilities:
- Laos – our team continues to work closely with the Laotian government to accelerate the approval for the Laos refinery; and
- A new refinery opportunity – (as introduced in our August corporate update) continues to gain momentum and there have been several discussions in this regard.
Financing for Capital Projects and Working Capital
Consistent with our August corporate update, we continue to engage with and be pursued by prospective financiers in support of our capital projects and business initiatives. Financings would be completed at the project level.
About Canada Rare Earth Corp.
Canada Rare Earth is developing an international integrated business within the global rare earth industry. Our immediate key focus is to generate revenues and positive cash flow from a variety of profit centres in the rare earth production and sales chain by sourcing, adding value and selling rare earths in all stages and forms. We are in the process of establishing our own mining, concentrating and refinery capabilities in addition to working with affiliated and third party organizations.
On behalf of the Board
Tracy A. Moore, CEO and Peter Shearing, COO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-looking statements in this release are made pursuant to the ‘safe harbour’ provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.
For more information on the Company, interested parties should review the Company's filings that are available at www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Tracy A. Moore
Chief Executive Officer
Chief Operating Officer
Tel: (604) 638-8886